QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 04-2742817 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Title of each class | Trading | Name of each exchange | ||
Common Stock, par value $0.01 per share | VICR | The NASDAQ Stock Market LLC |
Large accelerated filer | ||||||
Accelerated filer | ☐ | |||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Common Stock, $.01 par value | 31,839,578 | |||
Class B Common Stock, $.01 par value | 11,758,218 |
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35 | |||||
EX-31.1 SECTION 302 CERTIFICATION OF CEO | |||||
EX-32.1 SECTION 906 CERTIFICATION OF CEO | |||||
EX-32.2 SECTION 906 CERTIFICATION OF CFO |
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 203,605 | $ | 84,668 | $ | 159,763 | $ | 161,742 | ||||||||
Accounts receivable, less allowance of $82 in 2020 and $59 in 2019 | 41,136 | 38,115 | ||||||||||||||
Short-term investments | 70,469 | 50,166 | ||||||||||||||
Accounts receivable, less allowance of $82 in 2021 and 2020 | 55,012 | 40,999 | ||||||||||||||
Inventories, net | 58,169 | 49,187 | 57,129 | 57,269 | ||||||||||||
Other current assets | 6,872 | 7,096 | 6,657 | 6,756 | ||||||||||||
Total current assets | 309,782 | 179,066 | 349,030 | 316,932 | ||||||||||||
Long-term deferred tax assets, net | 189 | 205 | 221 | 226 | ||||||||||||
Long-term investments, net | 2,591 | 2,510 | 2,561 | 2,517 | ||||||||||||
Property, plant and equipment, net | 65,780 | 56,952 | 92,956 | 74,843 | ||||||||||||
Other assets | 1,777 | 1,994 | 1,608 | 1,721 | ||||||||||||
Total assets | $ | 380,119 | $ | 240,727 | $ | 446,376 | $ | 396,239 | ||||||||
Liabilities and Equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 11,911 | $ | 9,005 | $ | 22,081 | $ | 14,121 | ||||||||
Accrued compensation and benefits | 13,248 | 10,410 | 15,794 | 14,094 | ||||||||||||
Accrued expenses | 2,417 | 2,690 | 3,618 | 2,624 | ||||||||||||
Short-term lease liabilities | 1,563 | 1,520 | 1,559 | 1,629 | ||||||||||||
Sales allowances | 736 | 741 | 1,919 | 597 | ||||||||||||
Income taxes payable | 62 | 57 | 890 | 139 | ||||||||||||
Short-term deferred revenue and customer prepayments | 8,061 | 5,507 | 3,916 | 7,309 | ||||||||||||
Total current liabilities | 37,998 | 29,930 | 49,777 | 40,513 | ||||||||||||
Long-term deferred revenue | 813 | 1,054 | 573 | 733 | ||||||||||||
Contingent consideration obligations | 265 | 451 | 46 | 227 | ||||||||||||
Long-term income taxes payable | 575 | 567 | 649 | 643 | ||||||||||||
Long-term lease liabilities | 2,880 | 2,855 | 2,439 | 2,968 | ||||||||||||
Total liabilities | 42,531 | 34,857 | 53,484 | 45,084 | ||||||||||||
Commitments and contingencies (Note 11) | ||||||||||||||||
Commitments and contingencies (Note 10) | 0 | 0 | ||||||||||||||
Equity: | ||||||||||||||||
Vicor Corporation stockholders’ equity: | ||||||||||||||||
Class B Common Stock: 10 votes per share, $.01 par value, 14,000,000 shares authorized, 11,758,218 shares issued and outstanding in 2020 and 2019 | 118 | 118 | ||||||||||||||
Common Stock: 1 vote per share, $.01 par value, 62,000,000 shares authorized 43,146,143 shares issued and 31,511,337 shares outstanding in 2020; 40,403,058 shares issued and 28,768,252 shares outstanding in 2019 | 433 | 405 | ||||||||||||||
Class B Common Stock: 10 votes per share, $.01 par value, 14,000,000 shares authorized, 11,758,218 shares issued and outstanding in 2021 and 2020 | 118 | 118 | ||||||||||||||
Common Stock: 1 vote per share, $.01 par value, 62,000,000 shares authorized | ||||||||||||||||
43,452,740 shares issued and 31,817,934 shares outstanding in 2021; | ||||||||||||||||
43,204,671 shares issued and 31,569,865 shares outstanding in 2020 | 436 | 433 | ||||||||||||||
Additional paid-in capital | 326,026 | 201,251 | 336,278 | 328,392 | ||||||||||||
Retained earnings | 149,815 | 143,098 | 195,494 | 161,008 | ||||||||||||
Accumulated other comprehensive loss | (203 | ) | (383 | ) | (813 | ) | (204 | ) | ||||||||
Treasury stock at cost: 11,634,806 shares in 2020 and 2019 | (138,927 | ) | (138,927 | ) | ||||||||||||
Treasury stock at cost: 11,634,806 shares in 2021 and 2020 | (138,927 | ) | (138,927 | ) | ||||||||||||
Total Vicor Corporation stockholders’ equity | 337,262 | 205,562 | 392,586 | 350,820 | ||||||||||||
Noncontrolling interest | 326 | 308 | 306 | 335 | ||||||||||||
Total equity | 337,588 | 205,870 | 392,892 | 351,155 | ||||||||||||
Total liabilities and equity | $ | 380,119 | $ | 240,727 | $ | 446,376 | $ | 396,239 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Net revenues | $ | 78,112 | $ | 70,772 | $ | 212,274 | $ | 199,852 | $ | 95,376 | $ | 70,761 | $ | 184,172 | $ | 134,162 | ||||||||||||||||
Cost of revenues | 44,765 | 37,770 | 121,278 | 106,647 | 45,505 | 40,443 | 89,601 | 76,513 | ||||||||||||||||||||||||
Gross margin | 33,347 | 33,002 | 90,996 | 93,205 | 49,871 | 30,318 | 94,571 | 57,649 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 15,212 | 15,443 | 47,036 | 45,846 | 16,589 | 15,455 | 33,543 | 31,824 | ||||||||||||||||||||||||
Research and development | 12,032 | 11,507 | 38,197 | 34,433 | 13,273 | 12,830 | 26,299 | 26,165 | ||||||||||||||||||||||||
Total operating expenses | 27,244 | 26,950 | 85,233 | 80,279 | 29,862 | 28,285 | 59,842 | 57,989 | ||||||||||||||||||||||||
Income from operations | 6,103 | 6,052 | 5,763 | 12,926 | ||||||||||||||||||||||||||||
Income (loss) from operations | 20,009 | 2,033 | 34,729 | (340 | ) | |||||||||||||||||||||||||||
Other income (expense), net: | ||||||||||||||||||||||||||||||||
Total unrealized gains on available-for-sale | 36 | 11 | 81 | 50 | ||||||||||||||||||||||||||||
Less: portion of gains recognized in other comprehensive income | (35 | ) | (10 | ) | (78 | ) | (47 | ) | ||||||||||||||||||||||||
Total unrealized gains (losses) on available-for-sale | 20 | (2 | ) | 44 | 45 | |||||||||||||||||||||||||||
Less: portion of (gains) losses recognized in other comprehensive income | (19 | ) | 3 | (42 | ) | (43 | ) | |||||||||||||||||||||||||
Net credit gains recognized in earnings | 1 | 1 | 3 | 3 | 1 | 1 | 2 | 2 | ||||||||||||||||||||||||
Other income (expense), net | 333 | 145 | 712 | 670 | 372 | 232 | 603 | 379 | ||||||||||||||||||||||||
Total other income (expense), net | 334 | 146 | 715 | 673 | 373 | 233 | 605 | 381 | ||||||||||||||||||||||||
Income before income taxes | 6,437 | 6,198 | 6,478 | 13,599 | 20,382 | 2,266 | 35,334 | 41 | ||||||||||||||||||||||||
Less: Provision (benefit) for income taxes | 651 | 266 | (249 | ) | 805 | |||||||||||||||||||||||||||
Provision (benefit) for income taxes | 999 | (406 | ) | 856 | (900 | ) | ||||||||||||||||||||||||||
Consolidated net income | 5,786 | 5,932 | 6,727 | 12,794 | 19,383 | 2,672 | 34,478 | 941 | ||||||||||||||||||||||||
1 | (5 | ) | 10 | 8 | ||||||||||||||||||||||||||||
Less: Net (loss) income attributable to noncontrolling interest | (11 | ) | 5 | (8 | ) | 9 | ||||||||||||||||||||||||||
Net income attributable to Vicor Corporation | $ | 5,785 | $ | 5,937 | $ | 6,717 | $ | 12,786 | $ | 19,394 | $ | 2,667 | $ | 34,486 | $ | 932 | ||||||||||||||||
Net income per common share attributable to Vicor Corporation: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.13 | $ | 0.15 | $ | 0.16 | $ | 0.32 | $ | 0.45 | $ | 0.06 | $ | 0.79 | $ | 0.02 | ||||||||||||||||
Diluted | $ | 0.13 | $ | 0.14 | $ | 0.15 | $ | 0.31 | $ | 0.43 | $ | 0.06 | $ | 0.77 | $ | 0.02 | ||||||||||||||||
Shares used to compute net income per common share attributable to Vicor Corporation: | ||||||||||||||||||||||||||||||||
Basic | 43,164 | 40,332 | 41,814 | 40,279 | 43,553 | 41,643 | 43,504 | 41,140 | ||||||||||||||||||||||||
Diluted | 44,743 | 42,194 | 43,567 | 41,435 | 44,841 | 43,385 | 44,841 | 42,980 | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Consolidated net income | $ | 19,383 | $ | 2,672 | $ | 34,478 | $ | 941 | ||||||||
Foreign currency translation (losses) gains, net of tax (1) | (10 | ) | (15 | ) | (271 | ) | 26 | |||||||||
Unrealized (losses) gains on available-for-sale | (231 | ) | (3 | ) | (359 | ) | 43 | |||||||||
Other comprehensive (loss) income | (241 | ) | (18 | ) | (630 | ) | 69 | |||||||||
Consolidated comprehensive income | 19,142 | 2,654 | 33,848 | 1,010 | ||||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interest | (12 | ) | 3 | (29 | ) | 11 | ||||||||||
Comprehensive income attributable to Vicor Corporation | $ | 19,154 | $ | 2,651 | $ | 33,877 | $ | 999 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Consolidated net income | $ | 5,786 | $ | 5,932 | $ | 6,727 | $ | 12,794 | ||||||||
Foreign currency translation gains (losses), net of tax (1) | 84 | (11 | ) | 110 | 74 | |||||||||||
Unrealized gains on available-for-sale | 35 | 10 | 78 | 47 | ||||||||||||
Other comprehensive income (loss) | 119 | (1 | ) | 188 | 121 | |||||||||||
Consolidated comprehensive income | 5,905 | 5,931 | 6,915 | 12,915 | ||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interest | 7 | (6 | ) | 18 | 13 | |||||||||||
Comprehensive income attributable to Vicor Corporation | $ | 5,898 | $ | 5,937 | $ | 6,897 | $ | 12,902 | ||||||||
(1) | The deferred tax assets associated with available-for-sale |
Nine Months Ended | ||||||||||||||||
September 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Operating activities: | ||||||||||||||||
Consolidated net income | $ | 6,727 | $ | 12,794 | $ | 34,478 | $ | 941 | ||||||||
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||||||||||||||||
Adjustments to reconcile consolidated net income to net cash provided by (used for) operating activities: | ||||||||||||||||
Depreciation and amortization | 8,175 | 7,647 | 5,618 | 5,439 | ||||||||||||
Stock-based compensation expense, net | 4,286 | 2,292 | 3,138 | 2,646 | ||||||||||||
Provision (benefit) for doubtful accounts | 23 | (138 | ) | |||||||||||||
Increase (decrease) in long-term income taxes payable | 8 | (1 | ) | |||||||||||||
(Decrease) increase in long-term deferred revenue | (241 | ) | 902 | |||||||||||||
Gain on disposal of equipment | (9 | ) | (23 | ) | ||||||||||||
Decrease in long-term deferred revenue | (160 | ) | (160 | ) | ||||||||||||
Loss (gain) on disposal of equipment | 106 | (6 | ) | |||||||||||||
Decrease in contingent consideration obligations | (74 | ) | — | |||||||||||||
Decrease in other assets | 37 | 95 | ||||||||||||||
Increase in long-term income taxes payable | 6 | 4 | ||||||||||||||
Deferred income taxes | 16 | 24 | 5 | 17 | ||||||||||||
Credit gain on available-for-sale | (3 | ) | (3 | ) | (2 | ) | (2 | ) | ||||||||
Provision for doubtful accounts | — | 23 | ||||||||||||||
Change in current assets and liabilities, net | (3,742 | ) | (6,955 | ) | (13,037 | ) | (5,233 | ) | ||||||||
Net cash provided by operating activities | 15,240 | 16,539 | 30,115 | 3,764 | ||||||||||||
Investing activities: | ||||||||||||||||
Purchases of short-term investments | (50,706 | ) | — | |||||||||||||
Sales or maturities of short-term investments | 30,000 | — | ||||||||||||||
Additions to property, plant and equipment | (16,837 | ) | (9,122 | ) | (15,782 | ) | (8,724 | ) | ||||||||
Proceeds from sale of equipment | 9 | 23 | ||||||||||||||
Decrease (increase) in other assets | 135 | (37 | ) | |||||||||||||
Other | (106 | ) | 6 | |||||||||||||
Net cash used for investing activities | (16,693 | ) | (9,136 | ) | (36,594 | ) | (8,718 | ) | ||||||||
Financing activities: | ||||||||||||||||
Proceeds from employee stock plans | 10,836 | 3,423 | 4,751 | 7,385 | ||||||||||||
Payment of contingent consideration obligations | (107 | ) | (144 | ) | ||||||||||||
Proceeds from public offering of Common Stock | 109,681 | — | — | 109,732 | ||||||||||||
Payment of contingent consideration obligations | (186 | ) | (198 | ) | ||||||||||||
Net cash provided by financing activities | 120,331 | 3,225 | 4,644 | 116,973 | ||||||||||||
Effect of foreign exchange rates on cash | 59 | 44 | (144 | ) | 17 | |||||||||||
Net increase in cash and cash equivalents | 118,937 | 10,672 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (1,979 | ) | 112,036 | |||||||||||||
Cash and cash equivalents at beginning of period | 84,668 | 70,557 | 161,742 | 84,668 | ||||||||||||
Cash and cash equivalents at end of period | $ | 203,605 | $ | 81,229 | $ | 159,763 | $ | 196,704 | ||||||||
Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||
Balance on March 31, 2021 | $ | 118 | $ | 435 | $ | 333,011 | $ | 176,100 | $ | (573 | ) | $ | (138,927 | ) | $ | 370,164 | $ | 318 | $ | 370,482 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 1 | 1,700 | 1,701 | 1,701 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,567 | 1,567 | 1,567 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 19,394 | 19,394 | (11 | ) | 19,383 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (240 | ) | (240 | ) | (1 | ) | (241 | ) | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | 19,154 | (12 | ) | 19,142 | ||||||||||||||||||||||||||||||||
Balance on June 30, 2021 | $ | 118 | $ | 436 | $ | 336,278 | $ | 195,494 | $ | (813 | ) | $ | (138,927 | ) | $ | 392,586 | $ | 306 | $ | 392,892 | ||||||||||||||||
Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||
Balance on December 31, 2020 | $ | 118 | $ | 433 | $ | 328,392 | $ | 161,008 | $ | (204 | ) | $ | (138,927 | ) | $ | 350,820 | $ | 335 | $ | 351,155 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 3 | 4,748 | 4,751 | 4,751 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 3,138 | 3,138 | 3,138 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 34,486 | 34,486 | (8 | ) | 34,478 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (609 | ) | (609 | ) | (21 | ) | (630 | ) | ||||||||||||||||||||||||||||
Total comprehensive income (loss) | 33,877 | (29 | ) | 33,848 | ||||||||||||||||||||||||||||||||
Balance on June 30, 2021 | $ | 118 | $ | 436 | $ | 336,278 | $ | 195,494 | $ | (813 | ) | $ | (138,927 | ) | $ | 392,586 | $ | 306 | $ | 392,892 | ||||||||||||||||
Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||
Balance on March 31, 2020 | $ | 118 | $ | 407 | $ | 204,020 | $ | 141,363 | $ | (300 | ) | $ | (138,927 | ) | $ | 206,681 | $ | 316 | $ | 206,997 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 6 | 5,318 | 5,324 | 5,324 | ||||||||||||||||||||||||||||||||
Issuances of Common Stock in public offering | 18 | 109,714 | 109,732 | 109,732 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,936 | 1,936 | 1,936 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 2,667 | 2,667 | 5 | 2,672 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | (16 | ) | (16 | ) | (2 | ) | (18 | ) | ||||||||||||||||||||||||||||
Total comprehensive income | 2,651 | 3 | 2,654 | |||||||||||||||||||||||||||||||||
Balance on June 30, 2020 | $ | 118 | $ | 431 | $ | 320,988 | $ | 144,030 | $ | (316 | ) | $ | (138,927 | ) | $ | 326,324 | $ | 319 | $ | 326,643 | ||||||||||||||||
Three months ended September 30, 2020 | Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||||||
Balance on June 30, 2020 | $ | 118 | $ | 431 | $ | 320,988 | $ | 144,030 | $ | (316 | ) | $ | (138,927 | ) | $ | 326,324 | $ | 319 | $ | 326,643 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 2 | 3,449 | 3,451 | 3,451 | ||||||||||||||||||||||||||||||||
Additional expenses associated with issuance of Common Stock in public offering (see Note 5) | (51 | ) | (51 | ) | (51 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation expense | 1,640 | 1,640 | 1,640 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 5,785 | 5,785 | 1 | 5,786 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 113 | 113 | 6 | 119 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 5,898 | 7 | 5,905 | |||||||||||||||||||||||||||||||||
Balance on September 30, 2020 | $ | 118 | $ | 433 | $ | 326,026 | $ | 149,815 | $ | (203 | ) | $ | (138,927 | ) | $ | 337,262 | $ | 326 | $ | 337,588 | ||||||||||||||||
Nine months ended September 30, 2020 | Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||||||
Balance on December 31, 2019 | $ | 118 | $ | 405 | $ | 201,251 | $ | 143,098 | $ | (383 | ) | $ | (138,927 | ) | $ | 205,562 | $ | 308 | $ | 205,870 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 10 | 10,826 | 10,836 | 10,836 | ||||||||||||||||||||||||||||||||
Issuance of Common Stock in public offering, net (see Note 5) | 18 | 109,663 | 109,681 | 109,681 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 4,286 | 4,286 | 4,286 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 6,717 | 6,717 | 10 | 6,727 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 180 | 180 | 8 | 188 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 6,897 | 18 | 6,915 | |||||||||||||||||||||||||||||||||
Balance on September 30, 2020 | $ | 118 | $ | 433 | $ | 326,026 | $ | 149,815 | $ | (203 | ) | $ | (138,927 | ) | $ | 337,262 | $ | 326 | $ | 337,588 | ||||||||||||||||
Three months ended September 30, 2019 | Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||||||
Balance on June 30, 2019 | $ | 118 | $ | 403 | $ | 196,698 | $ | 135,849 | $ | (278 | ) | $ | (138,927 | ) | $ | 193,863 | $ | 453 | $ | 194,316 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 1 | 1,715 | 1,716 | 1,716 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 753 | 753 | 753 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 5,937 | 5,937 | (5 | ) | 5,932 | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | (1 | ) | (1 | ) | |||||||||||||||||||||||||||||||
Total comprehensive income | 5,937 | (6 | ) | 5,931 | ||||||||||||||||||||||||||||||||
Balance on September 30, 2019 | $ | 118 | $ | 404 | $ | 199,166 | $ | 141,786 | $ | (278 | ) | $ | (138,927 | ) | $ | 202,269 | $ | 447 | $ | 202,716 | ||||||||||||||||
Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||
Balance on December 31, 2019 | $ | 118 | $ | 405 | $ | 201,251 | $ | 143,098 | $ | (383 | ) | $ | (138,927 | ) | $ | 205,562 | $ | 308 | $ | 205,870 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 8 | 7,377 | 7,385 | 7,385 | ||||||||||||||||||||||||||||||||
Issuances of Common Stock in public offering | 18 | 109,714 | 109,732 | 109,732 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 2,646 | 2,646 | 2,646 | |||||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 932 | 932 | 9 | 941 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 67 | 67 | 2 | 69 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 999 | 11 | 1,010 | |||||||||||||||||||||||||||||||||
Balance on June 30, 2020 | $ | 118 | $ | 431 | $ | 320,988 | $ | 144,030 | $ | (316 | ) | $ | (138,927 | ) | $ | 326,324 | $ | 319 | $ | 326,643 | ||||||||||||||||
Nine months ended September 30, 2019 | Class B Common Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Vicor Corporation Stockholders’ Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||||||
Balance on December 31, 2018 | $ | 118 | $ | 402 | $ | 193,457 | $ | 129,000 | $ | (394 | ) | $ | (138,927 | ) | $ | 183,656 | $ | 434 | $ | 184,090 | ||||||||||||||||
Issuance of Common Stock under employee stock plans | 2 | 3,421 | 3,423 | 3,423 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 2,292 | 2,292 | 2,292 | |||||||||||||||||||||||||||||||||
Other | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||||||||||||||||||
Components of comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||
Net income | 12,786 | 12,786 | 8 | 12,794 | ||||||||||||||||||||||||||||||||
Other comprehensive income | 116 | 116 | 5 | 121 | ||||||||||||||||||||||||||||||||
Total comprehensive income | 12,902 | 13 | 12,915 | |||||||||||||||||||||||||||||||||
Balance on September 30, 2019 | $ | 118 | $ | 404 | $ | 199,166 | $ | 141,786 | $ | (278 | ) | $ | (138,927 | ) | $ | 202,269 | $ | 447 | $ | 202,716 | ||||||||||||||||
1. | Basis of Presentation |
2. | Inventories |
September 30, 2020 | December 31, 2019 | June 30, 2021 | December 31, 2020 | |||||||||||||
Raw materials | $ | 43,165 | $ | 35,901 | $ | 42,530 | $ | 42,556 | ||||||||
Work-in-process | 8,090 | 5,184 | 10,101 | 7,424 | ||||||||||||
Finished goods | 6,914 | 8,102 | 4,498 | 7,289 | ||||||||||||
$ | 58,169 | $ | 49,187 | $ | 57,129 | $ | 57,269 | |||||||||
3. | Short-Term and Long-Term Investments |
June 30, 2021 | ||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||
Measured at fair value: | ||||||||||||
Available-for-sale | ||||||||||||
Money market funds | $ | 68,978 | $ | — | $ | — | ||||||
U.S. Treasury Obligations | — | 70,469 | — | |||||||||
Failed Auction Security | — | — | 2,561 | |||||||||
Total | 68,978 | 70,469 | 2,561 | |||||||||
Other measurement basis: | ||||||||||||
Cash on hand | 90,785 | — | — | |||||||||
Total | $ | 159,763 | $ | 70,469 | $ | 2,561 | ||||||
December 31, 2020 | ||||||||||||
Cash and Cash Equivalents | Short-Term Investments | Long-Term Investments | ||||||||||
Measured at fair value: | ||||||||||||
Available-for-sale | ||||||||||||
Money market funds | $ | 69,493 | $ | — | $ | — | ||||||
U.S. Treasury Obligations | 19,998 | 50,166 | — | |||||||||
Failed Auction Security | — | — | 2,517 | |||||||||
Total | 89,491 | 50,166 | 2,517 | |||||||||
Other measurement basis: | ||||||||||||
Cash on hand | 72,251 | — | — | |||||||||
Total | $ | 161,742 | $ | 50,166 | $ | 2,517 | ||||||
September 30, 2020 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 409 | $ | 2,591 | ||||||||
December 31, 2019 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Failed Auction Security | $ | 3,000 | $ | — | $ | 490 | $ | 2,510 | ||||||||
June 30, 2021 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Treasury Obligations | $ | 70,470 | $ | 0 | $ | 1 | $ | 70,469 | ||||||||
Failed Auction Security | 3,000 | — | 439 | 2,561 | ||||||||||||
December 31, 2020 | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. Treasury Obligations | $ | 70,172 | $ | — | $ | 8 | $ | 70,164 | ||||||||
Failed Auction Security | 3,000 | — | 483 | 2,517 |
Cost | Estimated Fair Value | |||||||
U.S. Treasury Obligations: | ||||||||
Maturities greater than three months but less than one year | $ | 70,470 | $ | 70,469 | ||||
$ | 70,470 | $ | 70,469 | |||||
Cost | Estimated Fair Value | |||||||
Failed Auction Security: | ||||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,561 | ||||
Cost | Estimated Fair Value | |||||||
Due in twenty to forty years | $ | 3,000 | $ | 2,591 | ||||
2020 | 2019 | |||||||
Balance at the beginning of the period | $ | 37 | $ | 41 | ||||
Reductions in the amount related to credit gain for which other-than- temporary impairment was not previously recognized | (3 | ) | (3 | ) | ||||
Balance at the end of the period | $ | 34 | $ | 38 | ||||
2021 | 2020 | |||||||
Balance at the beginning of the period | $ | 33 | $ | 37 | ||||
Reductions in the amount related to credit gain for which other-than- temporary impairment was not previously recognized | (2 | ) | (2 | ) | ||||
Balance at the end of the period | $ | 31 | $ | 35 | ||||
4. | Fair Value Measurements |
Using | Using | |||||||||||||||||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of September 30, 2020 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of June 30, 2021 | |||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 9,677 | $ | — | $ | — | $ | 9,677 | $ | 68,978 | $ | — | $ | — | $ | 68,978 | ||||||||||||||||
Long-term investments: | ||||||||||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
U.S. Treasury Obligations | 70,469 | — | — | 70,469 | ||||||||||||||||||||||||||||
Long-term investment: | ||||||||||||||||||||||||||||||||
Failed Auction Security | — | — | 2,591 | 2,591 | — | — | 2,561 | 2,561 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Contingent consideration obligations | — | — | (265 | ) | (265 | ) | — | — | (46 | ) | (46 | ) |
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of December 31, 2019 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 9,630 | $ | — | $ | — | $ | 9,630 | ||||||||
Long-term investments: | ||||||||||||||||
Failed Auction Security | — | — | 2,510 | 2,510 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (451 | ) | (451 | ) |
Using | ||||||||||||||||
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value as of December 31, 2020 | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 69,493 | $ | — | $ | — | $ | 69,493 | ||||||||
U.S. Treasury Obligations | 19,998 | — | — | 19,998 | ||||||||||||
Short-term investments: | ||||||||||||||||
U.S. Treasury Obligations | 50,166 | — | — | 50,166 | ||||||||||||
Long-term investment: | ||||||||||||||||
Failed Auction Security | — | — | 2,517 | 2,517 | ||||||||||||
Liabilities: | ||||||||||||||||
Contingent consideration obligations | — | — | (227 | ) | (227 | ) |
Fair Value | Valuation Technique | Unobservable Input | Weighted Average | |||||||||
Failed Auction Security | $ | 2,561 | Discounted cash flow | Cumulative probability of earning the maximum rate until maturity | 0.15 | % | ||||||
Cumulative probability of principal return prior to maturity | 94.27 | % | ||||||||||
Cumulative probability of default | 5.58 | % | ||||||||||
Liquidity risk premium | 5.00 | % | ||||||||||
Recovery rate in default | 40.00 | % |
Fair Value | Valuation Technique | Unobservable Input | Weighted Average | |||||||||||
Failed Auction Security | $ | 2,591 | Discounted cash flow | Cumulative probability of earning the maximum rate until maturity | 0.11 | % | ||||||||
Cumulative probability of principal return prior to maturity | 94.75 | % | ||||||||||||
Cumulative probability of default | 5.14 | % | ||||||||||||
Liquidity risk premium | 5.00 | % | ||||||||||||
Recovery rate in default | 40.00 | % |
Balance at the beginning of the period | $ | 2,510 | ||
Credit gain on available-for-sale | 3 | |||
Gain included in Other comprehensive income | 78 | |||
Balance at the end of the period | $ | 2,591 | ||
Balance at the beginning of the period | $ | 2,517 | ||
Credit gain on available-for-sale | 2 | |||
Gain included in Other comprehensive income | 42 | |||
Balance at the end of the period | $ | 2,561 | ||
Balance at the beginning of the period | $ | 451 | $ | 227 | ||||
Payments | (186 | ) | (107 | ) | ||||
Decrease in contingent consideration obligations | (74 | ) | ||||||
Balance at the end of the period | $ | 265 | $ | 46 | ||||
5. | Revenues |
Three Months Ended September 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 16,905 | $ | 4,391 | $ | 21,296 | ||||||
Europe | 4,456 | 2,050 | 6,506 | |||||||||
Asia Pacific | 25,878 | 23,926 | 49,804 | |||||||||
All other | 454 | 52 | 506 | |||||||||
$ | 47,693 | $ | 30,419 | $ | 78,112 | |||||||
Nine Months Ended September 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 57,880 | $ | 17,205 | $ | 75,085 | ||||||
Europe | 18,451 | 5,218 | 23,669 | |||||||||
Asia Pacific | 60,917 | 50,076 | 110,993 | |||||||||
All other | 2,390 | 137 | 2,527 | |||||||||
$ | 139,638 | $ | 72,636 | $ | 212,274 | |||||||
Three Months Ended September 30, 2019 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
United States | $ | 25,265 | $ | 4,290 | $ | 29,555 | ||||||
Europe | 5,577 | 889 | 6,466 | |||||||||
Asia Pacific | 14,510 | 18,875 | 33,385 | |||||||||
All other | 1,130 | 236 | 1,366 | |||||||||
$ | 46,482 | $ | 24,290 | $ | 70,772 | |||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | Brick Products | Advanced Products | Total | |||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
United States | $ | 73,289 | $ | 16,562 | $ | 89,851 | $ | 19,708 | $ | 14,356 | $ | 34,064 | ||||||||||||
Europe | 17,960 | 3,517 | 21,477 | 10,224 | 1,285 | 11,509 | ||||||||||||||||||
Asia Pacific | 46,908 | 37,618 | 84,526 | 24,045 | 25,339 | 49,384 | ||||||||||||||||||
All other | 2,955 | 1,043 | 3,998 | 375 | 44 | 419 | ||||||||||||||||||
$ | 141,112 | $ | 58,740 | $ | 199,852 | $ | 54,352 | $ | 41,024 | $ | 95,376 | |||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
United States | $ | 38,291 | $ | 22,905 | $ | 61,196 | ||||||||||||||||||
Europe | 18,420 | 2,280 | 20,700 | |||||||||||||||||||||
Asia Pacific | 51,373 | 49,992 | 101,365 | |||||||||||||||||||||
All other | 727 | 184 | 911 | |||||||||||||||||||||
$ | 108,811 | $ | 75,361 | $ | 184,172 | |||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
United States | $ | 15,005 | $ | 5,217 | $ | 20,222 | ||||||||||||||||||
Europe | 9,427 | 2,289 | 11,716 | |||||||||||||||||||||
Asia Pacific | 21,383 | 16,774 | 38,157 | |||||||||||||||||||||
All other | 613 | 53 | 666 | |||||||||||||||||||||
$ | 46,428 | $ | 24,333 | $ | 70,761 | |||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
United States | $ | 40,975 | $ | 12,814 | $ | 53,789 | ||||||||||||||||||
Europe | 13,995 | 3,168 | 17,163 | |||||||||||||||||||||
Asia Pacific | 35,039 | 26,150 | 61,189 | |||||||||||||||||||||
All other | 1,936 | 85 | 2,021 | |||||||||||||||||||||
$ | 91,945 | $ | 42,217 | $ | 134,162 | |||||||||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 40,916 | $ | 27,422 | $ | 68,338 | ||||||
Stocking distributors, net of sales allowances | 6,661 | 1,463 | 8,124 | |||||||||
Non-recurring engineering | 116 | 1,499 | 1,615 | |||||||||
Royalties | — | 17 | 17 | |||||||||
Other | — | 18 | 18 | |||||||||
$ | 47,693 | $ | 30,419 | $ | 78,112 | |||||||
Nine Months Ended September 30, 2020 | ||||||||||||
Brick Products | Advanced Products | Total | ||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 116,127 | $ | 62,233 | $ | 178,360 | ||||||
Stocking distributors, net of sales allowances | 23,097 | 6,101 | 29,198 | |||||||||
Non-recurring engineering | 414 | 4,231 | 4,645 | |||||||||
Royalties | — | 17 | 17 | |||||||||
Other | — | 54 | 54 | |||||||||
$ | 139,638 | $ | 72,636 | $ | 212,274 | |||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||
Three Months Ended September 30, 2019 | Brick Products | Advanced Products | Total | |||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 39,705 | $ | 22,574 | $ | 62,279 | $ | 37,614 | $ | 32,644 | $ | 70,258 | ||||||||||||
Stocking distributors, net of sales allowances | 6,522 | 1,734 | 8,256 | 16,634 | 4,634 | 21,268 | ||||||||||||||||||
Non-recurring engineering | 163 | (36 | ) | 127 | 104 | 3,726 | 3,830 | |||||||||||||||||
Royalties | 92 | — | 92 | — | 3 | 3 | ||||||||||||||||||
Other | — | 18 | 18 | — | 17 | 17 | ||||||||||||||||||
$ | 46,482 | $ | 24,290 | $ | 70,772 | $ | 54,352 | $ | 41,024 | $ | 95,376 | |||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 81,422 | $ | 61,701 | $ | 143,123 | ||||||||||||||||||
Stocking distributors, net of sales allowances | 27,181 | 8,772 | 35,953 | |||||||||||||||||||||
Non-recurring engineering | 208 | 4,797 | 5,005 | |||||||||||||||||||||
Royalties | — | 56 | 56 | |||||||||||||||||||||
Other | — | 35 | 35 | |||||||||||||||||||||
$ | 108,811 | $ | 75,361 | $ | 184,172 | |||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 39,472 | $ | 20,044 | $ | 59,516 | ||||||||||||||||||
Stocking distributors, net of sales allowances | 6,814 | 1,576 | 8,390 | |||||||||||||||||||||
Non-recurring engineering | 142 | 2,695 | 2,837 | |||||||||||||||||||||
Other | — | 18 | 18 | |||||||||||||||||||||
$ | 46,428 | $ | 24,333 | $ | 70,761 | |||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | Brick Products | Advanced Products | Total | |||||||||||||||||||||
Brick Products | Advanced Products | Total | ||||||||||||||||||||||
Direct customers, contract manufacturers and non-stocking distributors | $ | 120,496 | $ | 49,524 | $ | 170,020 | $ | 75,211 | $ | 34,811 | $ | 110,022 | ||||||||||||
Stocking distributors, net of sales allowances | 19,750 | 7,817 | 27,567 | 16,436 | 4,638 | 21,074 | ||||||||||||||||||
Non-recurring engineering | 762 | 1,319 | 2,081 | 298 | 2,732 | 3,030 | ||||||||||||||||||
Royalties | 104 | 24 | 128 | |||||||||||||||||||||
Other | — | 56 | 56 | — | 36 | 36 | ||||||||||||||||||
$ | 141,112 | $ | 58,740 | $ | 199,852 | $ | 91,945 | $ | 42,217 | $ | 134,162 | |||||||||||||
June 30, 2021 | December 31, 2020 | Change | ||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | Change | ||||||||||||||||||||||
Accounts receivable | $ | 41,136 | $ | 38,115 | $ | 3,021 | $ | 55,012 | $ | 40,999 | $ | 14,013 | ||||||||||||
Short-term deferred revenue and customer prepayments | (8,061 | ) | (5,507 | ) | (2,554 | ) | (3,916 | ) | (7,309 | ) | 3,393 | |||||||||||||
Long-term deferred revenue | (813 | ) | (1,054 | ) | 241 | (573 | ) | (733 | ) | 160 | ||||||||||||||
Deferred expenses | 1,588 | 1,897 | (309 | ) | 980 | 1,650 | (670 | ) | ||||||||||||||||
Sales allowances | (736 | ) | (741 | ) | 5 | (1,919 | ) | (597 | ) | (1,322 | ) |
6. | Stock-Based Compensation |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cost of revenues | $ | 296 | $ | 86 | $ | 692 | $ | 228 | ||||||||
Selling, general and administrative | 846 | 482 | 2,313 | 1,507 | ||||||||||||
Research and development | 498 | 185 | 1,281 | 557 | ||||||||||||
Total stock-based compensation | $ | 1,640 | $ | 753 | $ | 4,286 | $ | 2,292 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cost of revenues | $ | 252 | $ | 277 | $ | 480 | $ | 396 | ||||||||
Selling, general and administrative | 779 | 1,030 | 1,632 | 1,467 | ||||||||||||
Research and development | 536 | 629 | 1,026 | 783 | ||||||||||||
Total stock-based compensation | $ | 1,567 | $ | 1,936 | $ | 3,138 | $ | 2,646 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Stock options | $ | 1,420 | $ | 514 | $ | 3,663 | $ | 1,556 | $ | 1,336 | $ | 1,737 | $ | 2,667 | $ | 2,243 | ||||||||||||||||
ESPP | 220 | 239 | 623 | 736 | 231 | 199 | 471 | 403 | ||||||||||||||||||||||||
Total stock-based compensation | $ | 1,640 | $ | 753 | $ | 4,286 | $ | 2,292 | $ | 1,567 | $ | 1,936 | $ | 3,138 | $ | 2,646 | ||||||||||||||||
7. | Rental Income |
8. | Income Taxes |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Provision (benefit) for income taxes | $ | 651 | $ | 266 | $ | (249 | ) | $ | 805 | |||||||
Effective income tax rate | 10.1 | % | 4.3 | % | (3.8 | )% | 5.9 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Provision (benefit) for income taxes | $ | 999 | $ | (406 | ) | $ | 856 | $ | (900 | ) | ||||||
Effective income tax rate | 4.9 | % | (17.9 | )% | 2.4 | % | (2,195.1 | )% |
9. | Net Income per Share |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Vicor Corporation | $ | 19,394 | $ | 2,667 | $ | 34,486 | $ | 932 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 43,553 | 41,643 | 43,504 | 41,140 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Employee stock options (2) | 1,288 | 1,742 | 1,337 | 1,840 | ||||||||||||
Denominator for diluted net income per share – adjusted weighted-average shares and assumed conversions | 44,841 | 43,385 | 44,841 | 42,980 | ||||||||||||
Basic net income per share | $ | 0.45 | $ | 0.06 | $ | 0.79 | $ | 0.02 | ||||||||
Diluted net income per share | $ | 0.43 | $ | 0.06 | $ | 0.77 | $ | 0.02 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Numerator: | ||||||||||||||||
Net income attributable to Vicor Corporation | $ | 5,785 | $ | 5,937 | $ | 6,717 | $ | 12,786 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic net income per share-weighted average shares (1) | 43,164 | 40,332 | 41,814 | 40,279 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Employee stock options (2) | 1,579 | 1,862 | 1,753 | 1,156 | ||||||||||||
Denominator for diluted net income per share – adjusted weighted-average shares and assumed conversions | 44,743 | 42,194 | 43,567 | 41,435 | ||||||||||||
Basic net income per share | $ | 0.13 | $ | 0.15 | $ | 0.16 | $ | 0.32 | ||||||||
Diluted net income per share | $ | 0.13 | $ | 0.14 | $ | 0.15 | $ | 0.31 | ||||||||
(1) | Denominator represents weighted average number of shares of Common Stock and Class B Common Stock outstanding. |
(2) | Options to purchase |
10. | Commitments and Contingencies |
11. | Impact of Recently Issued Accounting Standards |
Increase (decrease) | ||||||||||||
Legal fees | $ | 510 | 213.6 | % | (1 | ) | ||||||
Advertising | 307 | 44.2 | % | (2 | ) | |||||||
Compensation | 191 | 1.8 | % | (3 | ) | |||||||
Travel expense | 89 | 53.0 | % | (4 | ) | |||||||
Depreciation and amortization | 63 | 8.1 | % | |||||||||
Commissions | (92 | ) | (10.6 | )% | (5 | ) | ||||||
Other, net | 66 | 3.0 | % | |||||||||
$ | 1,134 | 7.3 | % | |||||||||
(1) | Increase primarily attributable to an increase in activity related to the SynQor litigation (see Note 10) and certain corporate legal matters. |
(2) | Increase primarily attributable to increases in sales support expenses, direct mailings, and advertising in trade publications. |
(3) | Increase primarily attributable to annual compensation adjustments in May 2021, partially offset by a decrease in stock-based compensation expense compared to the second quarter of 2020. |
(4) | Increase primarily attributable to a resumption of travel by the Company’s sales and marketing personnel. |
(5) | Decrease primarily attributable to the decline in net revenues subject to commissions. |
Increase | ||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Brick Products | $ | 47,693 | $ | 46,482 | $ | 1,211 | 2.6 | % | ||||||||
Advanced Products | 30,419 | 24,290 | 6,129 | 25.2 | % | |||||||||||
Total | $ | 78,112 | $ | 70,772 | $ | 7,340 | 10.4 | % | ||||||||
Increase (decrease) | ||||||||
Travel expense | $ | (690 | ) | (79.4 | )%(1) | |||
Commissions | (191 | ) | (21.6 | )%(2) | ||||
Outside services | (173 | ) | (25.4 | )%(3) | ||||
Compensation | 812 | 8.6 | %(4) | |||||
Other, net | 11 | 0.4 | % | |||||
$ | (231 | ) | (1.5 | )% | ||||
Increase (decrease) | ||||||||||||||||
Increase (decrease) | ||||||||||||||||
Compensation | $ | 730 | 8.8 | %(1) | $ | 375 | 4.1 | % (1) | ||||||||
Project and pre-production materials | 321 | | 16.6 | % (2) | ||||||||||||
Supplies | 79 | 24.7 | % | |||||||||||||
Facilities allocations | 99 | 16.7 | % | 55 | 9.4 | % | ||||||||||
Deferred costs | (144 | ) | (71.6 | )%(2) | ||||||||||||
Project and pre-production materials | (144 | ) | (9.5 | )%(3) | ||||||||||||
Freight | 40 | 153.3 | % | |||||||||||||
Overhead absorption | (523 | ) | (200.2 | )% (3) | ||||||||||||
Other, net | (16 | ) | (1.3 | )% | 96 | 8.7 | % | |||||||||
$ | 525 | 4.6 | % | $ | 443 | 3.5 | % | |||||||||
(1) | Increase primarily attributable to |
(2) | Increase primarily attributable to |
(3) | Decrease primarily attributable to |
2020 | 2019 | Increase (decrease) | 2021 | 2020 | Increase (decrease) | |||||||||||||||||||
Interest income | $ | 276 | $ | 17 | $ | 259 | ||||||||||||||||||
Rental income | $ | 198 | $ | 198 | $ | — | 198 | 198 | — | |||||||||||||||
Foreign currency gains (losses), net | 140 | (142 | ) | 282 | ||||||||||||||||||||
Interest income | 7 | 74 | (67 | ) | ||||||||||||||||||||
Gain on disposals of equipment | 3 | 1 | 2 | |||||||||||||||||||||
Foreign currency (losses) gains, net | (12 | ) | 3 | (15 | ) | |||||||||||||||||||
(Losses) gains on disposals of equipment | (106 | ) | 6 | (112 | ) | |||||||||||||||||||
Other, net | (14 | ) | 15 | (29 | ) | 17 | 9 | 8 | ||||||||||||||||
$ | 334 | $ | 146 | $ | 188 | $ | 373 | $ | 233 | $ | 140 | |||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Provision for income taxes | $ | 651 | $ | 266 | ||||||||||||
Provision (benefit) for income taxes | $ | 999 | $ | (406 | ) | |||||||||||
Effective income tax rate | 10.1 | % | 4.3 | % | 4.9 | % | (17.9 | )% |
Increase | ||||||||||||||||||||||||||||||||
Increase (decrease) | 2021 | 2020 | $ | % | ||||||||||||||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||||||||||||||||||
Brick Products | $ | 139,638 | $ | 141,112 | $ | (1,474 | ) | (1.0 | )% | $ | 108,811 | $ | 91,945 | $ | 16,866 | 18.3 | % | |||||||||||||||
Advanced Products | 72,636 | 58,740 | 13,896 | 23.7 | % | 75,361 | 42,217 | 33,144 | 78.5 | % | ||||||||||||||||||||||
Total | $ | 212,274 | $ | 199,852 | $ | 12,422 | 6.2 | % | $ | 184,172 | $ | 134,162 | $ | 50,010 | 37.3 | % | ||||||||||||||||
Increase (decrease) | ||||||||||||||||
Increase (decrease) | ||||||||||||||||
Compensation | $ | 2,349 | 8.2 | %(1) | $ | 1,196 | 5.7 | % (1) | ||||||||
Advertising expense | 251 | | 18.6 | % (2) | ||||||||||||
Legal fees | 468 | 46.7 | %(2) | 188 | 16.3 | % (3) | ||||||||||
Depreciation and amortization | 241 | 11.7 | %(3) | 102 | 6.7 | % (4) | ||||||||||
Bad debt expense | 161 | 116.7 | % | |||||||||||||
Outside services | (146 | ) | (8.9 | )% | ||||||||||||
Facilities allocations | (186 | ) | (14.5 | )% | 95 | 13.3 | % | |||||||||
Advertising expense | (252 | ) | (11.2 | )%(4) | ||||||||||||
Travel expense | (1,397 | ) | (61.8 | )%(5) | (205 | ) | (30.0 | )% (5) | ||||||||
Other, net | (48 | ) | (0.7 | )% | 92 | 1.6 | % | |||||||||
$ | 1,190 | 2.6 | % | $ | 1,719 | 5.4 | % | |||||||||
(1) | Increase primarily attributable to |
(2) | Increase primarily attributable to |
(3) | Increase primarily attributable to an increase in activity related to the |
Increase attributable to net additions of furniture and fixtures and capitalization of building improvements. |
(5) | Decrease primarily attributable to reduced travel by our sales and marketing personnel, due to travel restrictions caused by the COVID-19 pandemic. |
Increase (decrease) | ||||||||||||||||
Increase (decrease) | ||||||||||||||||
Compensation | $ | 2,088 | 8.4 | %(1) | $ | 968 | 5.4 | % (1) | ||||||||
Facilities allocations | 198 | 17.0 | % (2) | |||||||||||||
Freight | 66 | 115.5 | % | |||||||||||||
Computer expense | 60 | 19.0 | % | |||||||||||||
Project and pre-production materials | 1,122 | 23.7 | %(2) | (354 | ) | (7.9 | )% (3) | |||||||||
Deferred costs | 516 | 44.4 | %(3) | |||||||||||||
Overhead absorption | (830 | ) | (174.2 | )% (4) | ||||||||||||
Other, net | 38 | 0.6 | % | 26 | 1.0 | % | ||||||||||
$ | 3,764 | 10.9 | % | $ | 134 | 0.5 | % | |||||||||
(1) | Increase primarily attributable to |
(2) | Increase primarily attributable to |
(3) | Decrease primarily attributable to lower prototype development costs for |
Decrease primarily attributable to |
2020 | 2019 | Increase (decrease) | Increase | |||||||||||||||||||||
2021 | 2020 | (decrease) | ||||||||||||||||||||||
Interest income | $ | 469 | $ | 70 | $ | 399 | ||||||||||||||||||
Rental income | $ | 594 | $ | 594 | $ | — | 396 | 396 | — | |||||||||||||||
Interest income | 77 | 236 | (159 | ) | ||||||||||||||||||||
Foreign currency gains (losses), net | 23 | (202 | ) | 225 | ||||||||||||||||||||
Gain on disposals of equipment | 9 | 23 | (14 | ) | ||||||||||||||||||||
(Losses) gains on disposals of equipment | (106 | ) | 6 | (112 | ) | |||||||||||||||||||
Foreign currency losses, net | (174 | ) | (117 | ) | (57 | ) | ||||||||||||||||||
Other, net | 12 | 22 | (10 | ) | 20 | 26 | (6 | ) | ||||||||||||||||
$ | 715 | $ | 673 | $ | 42 | $ | 605 | $ | 381 | $ | 224 | |||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
(Benefit) provision for income taxes | $ | (249 | ) | $ | 805 | |||||||||||
Provision (benefit) for income taxes | $ | 856 | $ | (900 | ) | |||||||||||
Effective income tax rate | (3.8 | )% | 5.9 | % | 2.4 | % | (2,195.1 | )% |
Increase (decrease) | ||||||||
Increase (decrease) | ||||||||
Cash and cash equivalents | $ | 118,937 | $ | (1,979 | ) | |||
Short-term investments | 20,303 | |||||||
Accounts receivable | 3,021 | 14,013 | ||||||
Inventories, net | 8,982 | (140 | ) | |||||
Other current assets | (224 | ) | (99 | ) | ||||
Accounts payable | (2,906 | ) | (7,960 | ) | ||||
Accrued compensation and benefits | (2,838 | ) | (1,700 | ) | ||||
Accrued expenses | 273 | (994 | ) | |||||
Sales allowances | (1,322 | ) | ||||||
Short-term lease liabilities | (43 | ) | 70 | |||||
Sales allowances | 5 | |||||||
Income taxes payable | (5 | ) | (751 | ) | ||||
Short-term deferred revenue | (2,554 | ) | 3,393 | |||||
$ | 122,648 | $ | 22,834 | |||||
(a) | Disclosure regarding controls and procedures. |
(b) | Changes in internal control over financial reporting. |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
(1) | Filed as an exhibit to the Company’s Annual Report on Form 10-K filed on March 29, 2001 (FileNo. 000-18277) and incorporated herein by reference. |
(2) | Filed as an exhibit to the Company’s Current Report on Form 8-K filed on June 4, 2020 (FileNo. 000-18277) and incorporated herein by reference. |
(3) | Filed as an exhibit to the Company’s Current Report on Form 8-K filed on May 13, 2021 (FileNo. 000-18277) and incorporated herein by reference. |
VICOR CORPORATION | ||||||
Date: July 30 , 2021 | By: | /s/ Patrizio Vinciarelli | ||||
Patrizio Vinciarelli | ||||||
Chairman of the Board, President and | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: July 30 , 2021 | By: | /s/ James | ||||
James | ||||||
Vice President, Chief Financial Officer | ||||||
(Principal Financial Officer) |